Recently, the Australian group of consulting giant PwC declared a new trade community system. The new system will get powered by blockchain technology.
The Trade Community System has launched a proof-of-concept app to refine global trade productivity by linking supply chain information over the blockchain. Some are after the conclusion of years of a joint-effort between the Australian Chamber of Commerce and Industry (ACCI), the PwC Australia, and the harbor or Brisbane.
The system aims to enhance output, lower costs and intricacy of international trade. It will also lessen photocopying and blunders caused by the human through digitalization. Besides, the recorded information will get distributed on a decentralized register that keeps involved individuals close together, thanks to the supply chain.
The scheme is invented to address a number of suggestions and impediments emanating from the appraisal study by Australia’s national freight on the prime concerns of the supply chain. The report was released earlier this month.
Ben Lannan, PwC partners, said:
“The concept of the trading community system is the initial step in establishing a disruptive research supply chain that will digitize the motion of business information, upgrade link for customers. Besides, it will reduce the cost of supply chain and discord for businesses. It will dispense outstanding productivity benefits for Australia’s global businesses.”
Each year, Australia sees about 9 million container movement across its fiver major harbors. By 2015, the figure is expected to rise to 15 million containers.
The port of Brisbane is the largest Queensland multi-cargo. It stretches over 1,860.5 hectares of land. In the years 2016/2017, the port recorded more than 1.22 million container movements.
According to experts, an approximated 15% of data in separate import contracts gets reprinted nearly 30 times. It represents a remarkable depletion in system performance and record keeping. In an industry that is prominently impervious to change, ongoing incompetence as a result of the manual process see an extreme cost of $450 per container.
Bryan Clark, ACCI director of trade and international affairs said the price represents 1 billion USD loss in value. Besides, it goes to the center of attainable of Australia’s commodity trade when it gets out of the competitive international market. He called for a considerable program of digital improvement and modernization for Australia trade industry.
The Australian Financial Review published remarks by the ACCI official. He stated:
“What we have deliberated on is the ability to realize symbolic savings if we can utilize technology like blockchain in the business environment.”
The launch of proof-of-concept Blockchain app comes after Malcolm Turnbull, Australian Prime Minister Declaration of mandating the government’s Digital Transformation Agency (DTA) to examine blockchain technology for future use across the government.
The DTA is already relying on the $700,000 from the Australia federal budget to research and approve possible applications. In 2019, it will begin with a paradigm to deliver social welfare payments on a blockchain platform.